Toyota Asks Dealers To Fight Proposed Border Tax

Toyota Motor Company has reportedly sent a message to its U.S. dealerships to tell political leaders that a proposed border tax would hurt car buyers. Discussions of a proposed border tax are slated to begin soon amongst Republican lawmakers in Washington D.C.

The proposal being discuss includes imposing a 20 percent to 35 percent border tax or tariff on goods imported from other countries. Details of the plan are not yet worked out between the Trump Administration and Republican-controlled Congress; details such as which countries would be included and if it would be imposed on all imported products are not known.

Some of Toyota’s 1,500 dealerships have already heeded the advice by contacting their House of Representatives, specifically members that are on the House Ways and Means committee, which is responsible for taxes. Dealerships are telling their representatives that a border tax will negatively impact their businesses and lead to job losses.

Toyota dealerships currently employee around 97,000 Americans. About 1.2 million of the company’s annual 2.4 million sold vehicles are imported to the U.S. from other countries.

Toyota isn’t the only large company mobilizing against the border tax issues. Target, Best Buy and other retails are lobbying Congress against the matter as well. Subsequently, some corporations, such as Boeing, are lobbying in favor of the proposed legislation.

It isn’t clear if other automakers have taken a formal position on the matter.

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.